Guerin Consulting

The Royal Establishment of Chartered Surveyors warns that if you cannot get insurance for your home, you're in huge trouble. Mortgage lenders won't lend on homes that are uninsurable and consequently its value could fall by as much as 80%.

It is a high flood threat that is almost definitely to make your own home uninsurable. Based on a latest survey, 6.5 million properties are already in danger from flooding of which 1.5 million are in excessive threat areas. The government has completed flood defences in lots of such areas and safety for an extra 80,000 properties is due this year. But issues have additionally been expressed a couple of additional one 120 000 new homes planned for the Thames Gateway which are potentially in a excessive "in danger" zone. But many areas remain vulnerable. And if global warming continues, by 2030, the 1.5 million at risk could mushroom 3.5 million. Back in 2003 the Association of British Insurers (ABI) agreed the rules which dedicated UK insurers to offering dwelling and contents insurance for properties in areas that are assessed to be at a flooding threat once in seventy 5 years or more. The rider was that the flood defences had to be already in place or would be accomplished by the end of 2007.

The Department for Surroundings, Food and Rural Affairs (DEFRA) has the duty of developing and maintaining these flood defences but inside the insurance trade there's widespread concern that insufficient progress is being made. Consequently the insurers have has warned the federal government that there may very well be widespread withdrawal of insurance coverage cowl if progress is stepped up.

In the intervening time, these in areas threatened by flood water might find their insurance coverage premiums soaring. While the insurance trade agreed to supply insurance coverage cover, their dedication was simply to maintain premiums at "reasonable" levels. But there was no definition of what "affordable" means. Because of this premium will increase of 60% have been widespread with up four hundred% will increase in dangerous areas. In a tiny variety of cases, cowl has been withdrawn altogether, principally in nation areas where DEFRA considers the cost of defending a cluster of a few properties to be uneconomic.

Environmentalists warn that except DEFRA gets it is skates on, the UK 's current invoice for flood injury could rise from Ј950 million a yr, to Ј3.2 billion. After all, the typical insurance claim for family flood damage is Ј30,000 - that's even increased than hearth damage. And localised events like the 2004 flood at Boscastle, Cornwall , can cost the insurers over Ј15 million.

If you are in any doubt whether or not your property or proposed residence, is in a flood danger space, it's best to visit www.environment-agency.gov.uk. This is DEFRA's website the place you may verify whether they suppose your property is liable to flooding. Their maps have been initially designed for planning functions and provide information on a submit-code basis.

Whilst many insurers use the DEFRA information, others like More Than, have their own flood maps. These assess houses individually slightly than submit code areas. Which means in case your current insurer will increase your premium for flood risk and makes use of the DEFRA data, you should still be capable to get a less expensive rate from an insurer using it's personal flood data if its information identifies that your property is beyond the "at risk" zone.

The ABI has not too long ago added to the pressure on DEFRA to accelerate the constructing and upgrading of flood defences. It has warned that unless the federal government increases its spending on flood defences, the insurance coverage business may not continue their commitment to the 2003 principles.

That might be bad information for a lot of homeowners.